Microfinance organizations (MFOs) experienced significant growth in 2024, with microloans increasing by more than 50%. The most notable growth was seen among MFOs that are part of financial company groups. These groups often include major marketplaces and non-bank credit institutions.
The financial group members benefit from more affordable financing, which allows them to offer microloans at interest rates approximately 25% lower than other MFOs. This has made them attractive to households seeking loans.
In 2024, the quality of MFO portfolios improved due to an increase in new microloans and stricter macroprudential limits on lending to high-risk borrowers. The share of microloans issued to borrowers with debt service-to-income ratios of 50–80% and above 80% decreased to 11% and 3%, respectively.
Starting in 2025, additional measures will be implemented to limit household over-indebtedness. These measures include reducing the total interest and fees payable on a microloan from 130% to 100% of the principal and limiting the number of expensive microloans a borrower can have simultaneously. Currently, 22% of households using MFO services have three or more concurrent microloans, accounting for nearly half of the MFO consumer portfolio.
More information is available in the publication "MFO Market Trends in 2024."